1) I don't believe one word about the "source" who took part in the test with the microwave based system.
2) What is an unauthorized drone flight? Nothing this article described could be identified as unauthorized.
3) There is definitely a grey area when it comes to "where" you can fly, if not designated a no-fly zone. There is definitely a grey area when it comes to "near buildings" or "crowds" is concerned as well.
Not everyone buys a quad to fly in rural Nebraska, over the ocean in Florida or in an open field for fun. There has to be some discretion on both parts, the law makers and the quad flyers.